Ministry of Statistics & Programme Implementation has released findings of the Forward-Looking Survey on Private Sector CAPEX Investment Intentions for Survey period: November 2024 to January 2025. Respondents appeared cautious in disclosing CAPEX plans, often pending management approvals. Certain entities, such as Special Purpose Vehicles (SPVs) involved in infrastructure projects, were excluded from the survey frame as they report no turnover despite high CAPEX. Meanwhile, some included SPVs had no future investment plans due to project completion. Despite challenges like weak demand, geopolitical tensions, and high borrowing costs, about 30% of firms plan to invest in upgradation in 2024–25, supporting the sharp increase in CAPEX for that year. The slightly lower intended CAPEX for 2025–26, though still above 2023–24 levels, reflects cautious planning after a strong 2024–25. Overall, the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty.

As this is the first round of the survey, the findings may be seen as indicative and subject to refinement in future iterations. Capital expenditure (CAPEX) plays a crucial role in contributing to national investment and enhancing the stock of physical assets within the economy. It leads to the creation of long-term assets, which not only generate revenue for many years but also improve the overall operational efficiency of economic activities. The average Gross Fixed Assets per enterprise in the private corporate sector increased from Rs 3,151.9 crore in 2021–22 to Rs 3,279.4 crore in 2022–23 (4% growth), and further to Rs 4,183.3 crore in 2023–24, reflecting a significant 27.5% growth.